GROUP LIFE INSURANCE VS. INDIVIDUAL LIFE INSURANCE
Kelly Insurance Group helps employees and families understand the significant gap between employer-provided group life insurance and individual life insurance — why group coverage is not a substitute for an individual policy, what happens when employment ends, and how to close the coverage gap affordably.
SEE HOW FAR YOUR EMPLOYER LIFE INSURANCE ACTUALLY GOES FOR YOUR FAMILY.
Drag the slider to your salary. See how group coverage compares to what your family actually needs.
WHY EMPLOYER-PROVIDED COVERAGE IS NOT ENOUGH — AND WHAT TO DO ABOUT IT.
GROUP COVERAGE IS A BENEFIT — NOT A LIFE INSURANCE PROGRAM
One to two times your salary ends when your job ends and covers a fraction of what your family needs for real income replacement. It is a valuable benefit. It is not a life insurance plan. Build your foundation on individual coverage that is portable, properly sized, and controlled by you — not your employer.
LOSING YOUR JOB MEANS LOSING YOUR COVERAGE — AT THE WORST POSSIBLE MOMENT
A layoff, a career change, or a company closure can eliminate your group life insurance on your last day of work. Families most financially exposed are often those who discover their only life insurance ended simultaneously with their income. Individual coverage eliminates this compounding risk entirely.
CONVERTING GROUP COVERAGE IS COSTLY AND LIMITED
Most group policies allow terminated employees to convert to individual coverage without a medical exam — but the converted product is typically whole life, not the term coverage most families need, at a premium based on your current age and limited to the original group face amount. It is better than nothing. It is not a substitute for an individual policy purchased while you are employed and healthy.
INDEPENDENT BROKER. NATIONWIDE. SPECIALIST LIFE INSURANCE EXPERTISE.
Not captive to any single carrier, Kelly Insurance Group accesses the full life insurance market to find the right product for each client. Headquartered in Pittsburgh with offices in Los Angeles and Detroit, serving clients in all 50 states since 1881.
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FREQUENTLY ASKED QUESTIONS.
How much group life insurance does an employer typically provide?
Most employers provide group life equal to one to two times annual salary, with voluntary supplemental coverage up to five to eight times salary at simplified underwriting. Even the maximum voluntary amount is typically insufficient for families with significant income replacement needs.
What happens to my life insurance if I am laid off?
Group life coverage typically ends on the last day of employment or at the end of the month. You have the right to convert or port coverage under some plans — with deadlines typically 31 days from the end of group coverage. Individual coverage purchased in advance eliminates this time pressure entirely.
Can I buy supplemental life insurance through my employer?
Many employers offer voluntary supplemental group life at group rates with simplified underwriting. These plans are valuable for individuals with health histories that would make individual coverage more expensive, but the coverage still ends when employment ends.
Is individual life insurance more expensive than group life?
Not necessarily for young, healthy individuals. Individual term life can be very cost-competitive with voluntary group supplemental coverage and provides portability that group coverage cannot. For individuals with significant health conditions, group coverage is often less expensive because it does not involve individual underwriting.
Should I rely on my spouse's group life insurance for my family's protection?
Your spouse's group life covers your spouse's life — it does not cover your life. Both spouses need their own individual or group coverage sized to their respective income replacement needs. Relying on a spouse's group coverage for the family's protection creates a gap that individual policies on each spouse eliminate.
What is the difference between portable and convertible group life insurance?
Portability allows continued group term coverage at group rates for a limited period after leaving employment. Conversion allows group coverage to be converted to individual coverage without a medical exam — but typically to a whole life product at a higher premium. Portability is generally preferable when available, but neither is a substitute for an individual policy purchased while still employed and healthy.
READY TO GET STARTED?
CLOSE THE GAP BETWEEN YOUR GROUP COVERAGE AND WHAT YOUR FAMILY ACTUALLY NEEDS.
Kelly Insurance Group helps employees and families identify the gap between employer group life insurance and real coverage needs — and find affordable individual term life insurance to close it.
The availability of coverage and eligibility for coverage can depend on numerous factors. We cannot guarantee that all customers, individuals, and businesses looking for coverage will be successful in these efforts when contacting our team. All policy coverages and terms need to be fully reviewed by the respective consumer to ensure the coverage asked for is what is specifically being quoted or provided by any insurance policy. Insurance Policies, Coverage Changes, and their terms and conditions are not bound or altered until written confirmation is provided by one of our licensed team members or underwriters. This page does not offer legal advice, legal opinions, or policy interpretations. Rather, this page is meant as a resource to help provide customers and insurance consumers with additional considerations that may help in their insurance buying or pursuit of insurance information. Kelly Insurance Group does not employ or direct attorneys.
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Disclaimer: Coverage availability and eligibility may depend on many factors, including underwriting review, carrier guidelines, policy terms, state requirements, business operations, risk characteristics, and other information provided during the application or quoting process. Kelly Insurance Group cannot guarantee that every individual, customer, organization, or business seeking coverage will qualify for, receive, or successfully place insurance coverage. All policy coverages, exclusions, conditions, limits, endorsements, and terms should be carefully reviewed by the consumer, insured, or applicant to confirm that the coverage requested is the coverage being quoted, offered, or provided. Insurance coverage, policy changes, endorsements, cancellations, and other policy terms are not bound, changed, confirmed, or altered unless and until written confirmation is provided by a licensed Kelly Insurance Group team member, the applicable insurance carrier, or an authorized underwriter. This page is provided for general informational purposes only and does not provide legal advice, legal opinions, insurance coverage opinions, or policy interpretations. Information on this page should not be relied upon as a substitute for reviewing the actual policy language or consulting appropriate professional advisors. Kelly Insurance Group does not employ, supervise, or direct attorneys.